Documents required for home loan
People
generally have two options when it comes to where they live and ultimately call
home. One is to rent a home that someone else owns and the other is to purchase
a home for themselves. Home is not only a place to live but also a reflection
of who we are. Buying a house is a milestone decision of the life.
People who decide to buy a
house often do so because they are ready to settle down in one location and are
ready to make a financial investment. When a person has the money to buy a home
it may also be less expensive over time than renting. This is where home loan
comes into assistance.
Applying for a home loan can
be an instant solution to the house-related financial crunch. Further all the
banks and Financial Institutions are eager to offer loans at a very premium
rate of interest. Also the government of India is pushing their objective of
home ownership by way of subsidies on affordable home segment to first time
home buyers.
A home loan or housing loan
is an amount borrowed by individuals for a fixed tenure from financial
institutions to buy, construct, repair or renovate a residential property. The
Bank/NBFC charge an interest on the amount borrowed, which has to be paid by
the borrowers along with the principal amount which is termed as Equated Monthly
Installment (EMI).
The bank provides home loan
to the borrower on certain terms and conditions .Banks/ NBFC get the property
valued independently and provide the loan on the basis of re-payment capacity
of the borrower, also considering the property value and the agreement/Registry
amount of the property being purchased. Usually the final sanction amount is
lowest of these 3 values.
DOCUMENTS
REQUIRED FOR HOME LOAN
Applying for home loans
online or offline requires the borrower to submit a list of documents as
demanded by the loan provider. Documents required for home loan vary as per the
employment type of the individual, i.e. salaried or self-employed, The
following, however, are commonly requested for from all the applicants:
·
A
duly filled bank loan application form
·
2
recent passport size photographs.
·
Proof
of identity (Copy of Aadhar/Passport/Voter ID/PAN Card).
·
Proof
of address (Copy of latest Electricity Bill/Telephone Bill/Property Tax
Receipt/Voter ID/Passport).
·
Last
12 months’ Pass Book/Bank Account Statement for all saving and current accounts
·
Identification
of signatures from present bankers or a signature proof such as PAN card.
·
A
cheque covering the administrative costs/processing incurred by the bank in
processing the application
Documents
Requested from Co-applicants
·
Identity
and address proof.
·
2
passport sized photos.
·
Proof
of business.
·
Identification
of signatures from his/her present bankers or a signature proof such as PAN
card.
Additional
Documents Requested from Salaried Applicants
·
Letter
of employment
·
Salary
certificate from the employer (original).
·
Copy
of ITR along with computation of Income or Form 16 for last 2 years.
·
Last
6 month salary slips
Additional
Documents Requested from Self-Employed/Professionals/ Business entities
·
Copy
of ITR/Assessment Orders of 3 years.
·
Computation
of Income/ Profit and loss account/ Balance Sheets of last 3 years.
·
Audit
reports for last 3 years if any.
·
Business
registration proof in case of self employed individuals.
·
Statement
of Personal assets and liabilities.
·
GST
returns for last 4 quarters.
·
Partnership
Deeds in case of partnership firms
·
Certificate
of Incorporations/Article of associations/Memorandum of associations in case of
private ltd company.
Documents
related to property
·
Copy
of agreement to sell for the property in question. (Sale Deed)
·
In
case of builder property purchase copy of builder buyer agreement along with
payment receipts.
·
In
case of resale copy of complete chain of property papers right from the
origination.
·
Copy
of allotment and possession letters
·
Copy
of house tax, along with other government departmental taxes.
·
Copy
of the sanction map of the property
· Copy of the Occupancy Certificate (OC)
Here is a checklist of the
documents required to apply for a home loan.
1. Passport Size Photographs
2. Identity Proof: Passport / Driving
License / Voter ID / PAN Card / Aadhaar Card.
3. Address Proof: Driving License /
Registered Rent Agreement / Electricity Bill (up to 3 months old) / Passport.
4. Employment Appointment
Letter: Required
if the current employment is less than 1-year old.
5. Financial Documents:
o Last 3 months salary slip.
o 6 month bank statement.
o 2 year Form 16.
6. Property Documents: Sale deed, Khata,
transfer of ownership, Ownership Certificate
7. Advance Processing Cheque: A cancelled cheque for
validation of bank account.
8. Financial Documents:
a. For Salaried Individual: 3 month salary slip, Form 16 and bank
statement
b. For Self-Employed Individual: IT returns for last 2
years along with computation of income tax for past 2 years certified by a
Chartered accountantc. For Self-Employed Non- Professionals: IT
returns for last 3 years along with computation of income tax for past 2 years
certified by a Chartered accountant
9. Complete Home Loan Application form duly filled.
Property
Documents
1. Take a look at the title deed. Make sure it is original. The bank does not have a lien on it. Meet the RWA or the property management company to ensure that the owner is genuine and the Deed is correct.
2. Check the sale deed of the
apartment. If it is an apartment the original deed must be checked before it
changed hands. Complete history of the apartment must be available from the
builder till today.
3. The building approval plan.
For the apartment building as well as for plot. See if unauthorised changes
have been made by the current owner.
4. Land use conversion. For a
new colony or for a builder, check that he has a full authorisation to build on
the land or design a colony
5. The Building Completion
Certificate. This is important. You have a completion certificate that building
is made as per plan. Any compounding charges have been paid.
6. Occupancy certificate. This
is from various agencies like fire, water and Electricity. All have cleared the
building and given the NOC in case of fire and connections in case of Water and
Electricity. All dues have been cleared.
Checklist for buying properties
1. Each document you are going
to put your signature. It starts from Booking form till Agreement
2. Approved plans and
Commencement Certificate. Verify if the plan seen by you in brochure/Sales
material is the same
3. Title Certificate issued by
the Advocate for the land on which building is erected.
4. N A order, wherever it is
applicable. It is important to check when you are buying a property outside
city limits. Check all conditions
5. Check amenities and
specifications offered by the builder. You recheck if they are same mentioned
in agreement when you go for signing it.
6. Physically check the work on
site
7. Very Important- Check the registration of
the project done with RERA. Check all details filled up on the website of Maha RERA.
This is relevant to Projects in Maharashtra only.
In India, buying property
is a particularly demanding task with several hurdles. The exact laws governing
the sale of the property might be slightly different in different states, but
there are a few permissions and documents a builder or promoter must have if
they are selling flats. Here are the legal documents that you should check when
buying a flat from a builder.
1.Title Deed
2.Mother Deed
3.Intimation of Disapproval
4.Commencement Certificate
5. Encumbrance Certificate
6.Approved Layout Plans
7.Occupancy Certificate
These are the common and important documents needed before buying a
property irrespective of any state and city inside India. If you are looking to
buy a property or any loan process, you can visit Prologiq,
business management company, Coimbatore, providing Title Services, Appraisal,
BPO Data Entry, Property Preservation, and Inspection, REO, Transaction
Co-ordination, HUD Preparation, Loan Audit, QA, etc..
1. Sale Deed: A Sale Deed is the
core legal document that acts as proof of sale and transfer of ownership of the
property from the seller to the buyer.
2. Mother Deed: It is a document that helps
in the further sale of the property, thereby establishing the new ownership.
3. Building approval plan:
4. Commencement Certificate
5. Power of Attorney
6. Latest tax paid receipt
7. Occupancy Certificate
Sale Deed
Title Deed
Approved Building plans
Completion Certificate (Newly Constructed)
Commencement Certificate (Under-construction
property)
Conversion Certificate (If agricultural land is
covered to non-agricultural)
Encumbrance Certificate
Latest Tax Receipts
Occupancy Certificate
Previous Sale Deed (in case of a resale flat),
Blue Print Plan
Commencement and Completion Certificate
Parking Allotment Letter
Possession Letter
Recent Electricity Bill
Recent Tax Receipt,
Society Registration and Share Certificate
Society NOC, etc.
If you are buying a property
and if you are taking a loan from bank then you need to submit some documents:
·
Blue
print of the plan from the builder (In case of flat / constructed property)[not
relevant for land]
·
Commencement
certificate[not relevant for land]
·
Completion
certificate [not relevant for land]
·
Permission
for Non agriculture use of land
·
If
land is originally agricultural, permission from revenue authority is needed.
·
7/12
extract in case of land property [specific to Maharashtra or some equivalent in
other states]
·
Previous
sale deeds in case of resale
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